Unlike professional fund managers, retail investors typically base their investment decisions almost entirely on recommendations from friends, colleagues, group members (social/sports clubs, community groups, etc.), family, trusted financial writers (journalists, newsletter writers), investment advisors (for those who can afford them) and—for momentum-oriented investors—social media influencers.

Retail investors now hold the majority of the world’s publicly-traded shares (Indefi Research). This trend is expected to continue through 2030, by which time individual investors are expected to own over 60% of the world’s publicly-traded AUM.

Fueled by low/no commission platforms like Robinhood, investors are increasingly eschewing traditional advisors and mutual funds in favor of self-directed trading. The result: Retail ownership and influence continue to rise across market caps, with small- and micro-cap companies seeing the most pronounced increases.